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Target (TGT) Outperforms Broader Market: What You Need to Know

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Target (TGT - Free Report) ended the recent trading session at $105.39, demonstrating a +2.89% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.73%. Elsewhere, the Dow saw an upswing of 0.18%, while the tech-heavy Nasdaq appreciated by 1.21%.

Coming into today, shares of the retailer had gained 0.41% in the past month. In that same time, the Retail-Wholesale sector lost 1.16%, while the S&P 500 gained 0.47%.

Investors will be eagerly watching for the performance of Target in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 20, 2025. The company is predicted to post an EPS of $2.08, indicating a 19.07% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $24.88 billion, indicating a 2.26% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.55 per share and revenue of $104.66 billion, which would represent changes of -14.79% and -1.79%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Target. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Target is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, Target is holding a Forward P/E ratio of 13.57. Its industry sports an average Forward P/E of 22.5, so one might conclude that Target is trading at a discount comparatively.

It's also important to note that TGT currently trades at a PEG ratio of 2.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Retail - Discount Stores industry had an average PEG ratio of 2.71.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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